There is a significant interest in displacing chlorine with ozone in a variety of water treatment processes. Some processes include wastewater treatment, purification of drinking water and bleaching operations. While chlorine is seen as a low cost disinfectant, there are many problems with chlorine including it is hazardous to use and ship, by-products of disinfection (e.g. trihalomethanes) are carcinogens and chlorine is not as strong an oxidant as ozone (Chlorine does not destroy viruses and 'cryptosporidium', but ozone does). CMS will introduce its novel ozone resistant membranes using a novel process to significantly reduce the cost of supplying ozone for oxidation processes. Program objectives are to reduce the system oxygen cost (which is a major component of ozone costs) by at least 20%. This program will focus on drinking water treatment. We believe the technology as proposed should have broad applicability including wastewater, drinking water, water for injection, and process water applications. In Phase I we will build both perfluoromembrane modules and an overall system for supplying low cost oxygen and low cost ozone. After the system is built we will demonstrate its performance on a number of contaminants (nitrobenzene, humic acid, and 'cryptosporidium'). We have established strong working relationships with a number of industrial organizations. These relationships should enhance our ability to successfully complete this program as well as subsequent commercialization.